Dutch Company Formation

Opening a Dutch company in the Netherlands

Why open a company in the Netherlands? What are the advantages in the Netherlands?
The Netherlands, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

As part of the European Union, the local currency is the Euro (EUR). Holland is not really cheap.

The Netherlands is a convenient gateway to the European market, especially for importers as discussed below, with cheap maintenance costs for the company, and with a local market that understands the English language very well.

A company in the Netherlands for import/export
The Netherlands has something very important for exporters who want to import products to Europe.

When you import to Europe from any country in the world outside of Europe, basically you are supposed to pay VAT and after that you get the VAT back when you take the goods out of the country. That is, when a European company imports products from outside Europe into the European country, it first has to pay local VAT on all products. Then when it exports the products to other European countries, for example Belgium, France, Germany, Portugal, England, the company pays VAT in those countries and receives a refund About VAT in the Netherlands.

The problem is that the credit is made after 6 months. Therefore, quite a large amount of equity is required, which is actually "stuck" in this VAT refund process for 6 months, and it does not actually generate a return for the owner. This is a significant barrier to entry.

What is special in the Netherlands is that there is a principle called deferment. If you have a Dutch company, instead of paying VAT in the Netherlands on the goods imported from outside Europe into Europe through the Netherlands, the VAT is recorded as a debt only, and then when the importer shows that he took the goods out of the Netherlands, the debt is cancelled.

In principle, it can be done in Austria as well, but in the Netherlands it is the easiest, because every customs broker knows how to do it. In addition, the trucks in the Netherlands are cheaper, and the Netherlands is more accessible to countries like France, Belgium, etc.

Of course the goods have to physically arrive in the Netherlands, usually to the beautiful port of Rotterdam. Anyone who has not been to Rotterdam - highly recommended!

The process of opening a company in the Netherlands
Opening a company in the Netherlands begins with the signing of a notarial power of attorney to open a company by a local agent on our behalf. The document is then sent with a courier and the company is established in the Netherlands.

In the Netherlands there is no need for a local director or a local shareholder. In the Netherlands you also do not need any European citizenship to open a company. You can open a Dutch company even if you are a foreign citizen. This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

Opening a bank account in the Netherlands - a current account for the company in the Netherlands
After opening the company, it is time to open a current bank account in the Netherlands for the company. Since it is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country. We note that this is not easy, but can be done with assistance from us.

In addition, there is an alternative, which is opening an Internet bank account. Indeed, similar to our "Zero One" bank, there are Internet banks in Europe that would be happy to accept your company in the Netherlands as a customer.

Equity Requirements
In the past, the required equity was 18,000 euros. This requirement has been abolished and now there is no need to deposit equity to open a company in the Netherlands.

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company with VAT will also be carried out. The company will receive a VAT number and you can start importing goods from outside Europe.

Here's an example of articles of association for a Dutch company, which we opened:

EORI number
We will be able to obtain an EORI number for you so that you can import or export with the company within Europe.

EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.

However, all costs in the Netherlands are low due to the relatively cheap cost of living.

Tax in the Netherlands
The company tax in the Netherlands is at a rate of 25.8%.

For sales to the local Dutch market, the VAT is 21%.

Questions and answers
Question: Is it necessary to physically fly to the Netherlands to open a company in the Netherlands?
Answer: The entire process of opening the company is carried out remotely and at no stage is it necessary to physically come to the Netherlands. However, at the stage of opening the bank account, it is necessary to come to the Netherlands physically and try to open the bank account. We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for a company in your new Netherlands.

Another option is to open an internet bank account, without the need to come to the Netherlands.

Question: Who provides the local address for the company in New Holland?
Answer: We will provide the local address.

Question: How can I find a good accountant who can take care of our New Holland company?
Answer: We will connect you with a local accountant.

Question: What type of company in the Netherlands should I open?
Answer: In the Netherlands there is only one type of company. A company in the Netherlands is called B.V.

Question: Do you need a European passport to open a company in the Netherlands?
Answer: There is no need for a European passport. We can open a company in the Netherlands for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in the Netherlands?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 3 weeks. After that, the process of opening a bank account takes between 1-3 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in the Netherlands for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in the Netherlands for a person with American citizenship or a person living in the USA.

Question: How much does it cost to open a company in the Netherlands?
Answer: Click here to contact us and get an up-to-date quote for free!